Zoom has stepped up its efforts to integrate artificial intelligence into its products. Photo: Bloomberg
Zoom Video Communications on Wednesday raised its annual revenue forecast, driven by strong demand for its AI-powered collaboration tools deployed in hybrid work models, and said Kelly Steckelberg would step down as chief financial officer.
Shares of the video conferencing provider were up 3 percent in after-hours trading.
Zoom has stepped up its efforts to integrate artificial intelligence into its products and expand its range of services to take advantage of the growing trend of hybrid work.
Zoom Contact Center, the company’s AI-powered omnichannel platform that provides businesses with personalized answers for their customers, landed several high-profile clients, including its largest single-order deal to date in the second quarter.
Zoom said large accounts, with customers contributing more than $100,000 in revenue in the past 12 months, increased 7.1 percent.
The average monthly online abandonment rate also hit an all-time low.
This suggests Zoom is “doing more than just holding its own. They’re shoring up their foundation and making sure they’re prepared for the long haul,” said Jeremy Goldman, senior director of briefings at Emarketer.
“The company needs to continue to innovate and expand its product offerings… Zoom’s challenge will be to maintain this momentum by proving that they are more than a one-hit wonder amid the pandemic and continue to deliver the kind of growth that can keep investors excited about their long-term prospects,” Goldman said.
Zoom said it has begun a search for Steckelberg’s successor.
His last day at the company will be the day after the company’s results for the quarter ending October 31 are announced.
Steckelberg has been Zoom’s CFO since 2017 and led the company through its successful IPO in 2019.
The company expects fiscal 2025 revenue to be between $4.63 billion and $4.64 billion, compared with $4.61 billion and $4.62 billion previously forecast.
Its second-quarter revenue of $1.16 billion beat LSEG’s estimates of $1.15 billion.
The company earned $1.39 per share on an adjusted basis, also beating analysts’ estimate of $1.21.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 22, 2024 | 7:51 a.m. IS
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